China to grow its own global audit firms

China is banking on its audit firms growing globally just as more and more
Chinese companies list abroad, according to a top regulatory official.

The country wants to reduce its reliance on the Big Four that currently
monopolise the auditing of Chinese companies listed overseas, the FT

Liu Yuting, director general of the Ministry of Finance’s accounting
regulatory department, told the paper he wanted the development of accounting
firms to catch up with China’s spectacular economic growth.

‘As Chinese companies list abroad, we also hope the audit firms can go global
too,’ Liu said. ‘After all, the entry of foreign companies into China happened
alongside the introduction of foreign audit firms

At the same time the Big Four – KPMG, PwC, Deloitte and Ernst & Young –
are proceeding with ambitious expansion plans in China, with each aiming to
raise its headcount in the mainland and Hong Kong.

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